Burlingame pursues residential builder fees

Should officials ultimately adopt the fees charged to those proposing residential development in Burlingame, the money would funnel into an account fueling programs intended to fight the affordability crunch.

While councilmembers largely agreed the issue required a more thorough examination, most recognized the opportunities presented through the additional money potentially generated.

“This is something worth exploring, because the vision is that we want a wider array of affordability in Burlingame,” said Councilwoman Emily Beach.

Councilman Ricardo Ortiz shared a similar enthusiasm for adopting the fees, and pushed most aggressively for their establishment.

“In general, I’m hearing we all agree we should have fees, and I think we should move forward as quickly as possible,” he said.

Ortiz went as far as recommending a range of fees, between $15 and $25 per square foot depending on the size and scope of development, with the more expensive amount being sought from builders proposing larger projects.

A city report released prior to the study session suggested Burlingame could expect to receive between $7 million and $19 million in revenue from the fees, assuming the roughly 900 units in the development pipeline are constructed.

Median fees across the county range around $20 per square foot of townhome and condominium development and $21 per square foot of apartment construction, according to the report.

The residential fees, along with their counterparts charged for commercial development, would flow into a fund available for officials to allocate toward a variety of efforts designed to keep housing more affordable.

Officials identified programs such as paying into the county’s Housing Endowment and Regional Trust, or HEART, to address broad housing issues while preserving some money locally to support residents feeling the pinch of the affordability crisis as potentially worthy initiatives to pursue with the money.

While recognizing Ortiz’s enthusiasm for establishing the fee rates, his fellow councilmembers were less ambitious and instead preferred a more measured pursuit.

Councilwoman Ann Keighran said it is imperative officials meet with developers potentially affected by the fees to discuss the proposal before setting rates.

“I’m in favor of taking a holistic approach, making sure it is equitable and then moving forward,” she said.

Such a sentiment was shared by Beach, who favored more deliberation for fear of establishing rates so burdensome that they scare housing developers away from Burlingame.

“In theory I’m supportive of these, but I just want to make sure that we are coming to the right number,” she said.

Beyond concerns regarding arrival at the correct rate level, Mayor Michael Brownrigg said he would favor further exploration of strategies incentivizing development of affordable units.

His primary concern is establishing a fund fed by fees without a clear plan for addressing affordability issues, while also not having enough money to cover the sizable cost of building new units.

“I just don’t see about $10, $15, $20 million gets you close to the production that I think we need,” he said.

Leora Tanjuatco, organizing director for the Housing Leadership Council of San Mateo County, noted though such funds do not necessarily need to go directly to construction of new units.

Instead, she said the money can be matched and leveraged with other regional organizations such as nonprofit housing developers to facilitate construction of affordable units in larger residential projects.

Recognizing the opportunity to pair the funds with outside agencies, Brownrigg said alongside the fee establishment he would like the city to investigate development of an inclusionary housing policy.

New state laws grants cities the authority to establish affordable housing construction mandates in for-rent projects, so long as developers are allowed to pursue alternative community benefits rather than constructing the below-market-rate units.

As Burlingame examines the variety of initiatives available to address the community’s housing crisis, Vice Mayor Donna Colson lauded officials’ comprehensive approach.

“I’m happy we are doing this. It’s one of a number of tools we will have in our war chest on the affordable housing issue. It’s important not to do just a single solution, but a myriad of solutions in a complex environment,” she said.

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